Over the years, we have realized that doing business is not all about profit. The operations of many businesses create environmental and social problems in the world. When people are blindly greedy and consider only their own wallets when making business decisions, we all suffer. Pollution, discrimination, deforestation, displacement… these are all sometimes effects of doing business for some companies.
It should be apparent to everyone at this point that our actions affect other people - even small ones. The population of the world is not getting smaller, and our impact grows as the planet gets more crowded.
There is a concept that has been brewing for the past 10 years called the Triple Bottom Line (also known as “people, planet, profit”). It states that our business’ profit should be measured not just in monetary terms but also taking into account the environmental and societal impact of our business’ operations. This, it is thought, measures the true worth of your business.
The United Nations developed standards to measure the Triple Bottom Line of doing business and it is becoming the dominant approach to public sector full cost accounting.
If you think about it, the negative environmental and social actions of a company are often paid for in the form of lawsuits - therefore decreasing their profit. It seems it would be better to take preemptive action to prevent those things upfront by improving practices, therefore making those lawsuits non-existent. You can see how this would increase your company’s net income.
Women With Moxie strives to pay attention to our triple bottom line, seeking to alleviate our effect on the environment, treat our members with respect and be a positive force in our local economy.
What are your thoughts on the Triple Bottom Line?
I enjoyed your article. I think every business both small and large should be more conscious of the environmental impact of their business. We sell energy efficient lighting and give an environmental breakdown of how customers would be reducing the environmental impacts. You probably wouldn’t be surprised if I told you how many of them either do no care, or really just don’t understand what reducing oil, carbon and natural gas by 298,345 lbs means. Good article. I couldn’t agree with you more.
Matt - Business Owner - sarasota | Bradenton